A U.S. plan for getting Iraq back on its feet may deliver a body blow to the economies of oil-producing Gulf states, according to Arab analysts, who are greeting the remarks by Vice President Dick Cheney about Iraq's future crude production with suspicion.

Cheney predicted Iraq may be able to pump as much as 3 million barrels of oil a day by the end of this year, which would generate annual sales of $20 billion to help it rebuild.

The total cost of reconstruction in Iraq is estimated to reach $100 billion.

Iraq averaged production of 2.48 million barrels a day in February, according to Bloomberg News estimates and currently produces 1.7 million barrels a day, according to Arab News.

Arab analysts allege the U.S., the world's largest oil consumer, will seek to pump up Iraq's production quotas as a way to drive down the price.

Adnan Jaber, economic editor of Al-Watan, told Arab News the drop in oil prices could have a domino effect on other sectors of the economy in Saudi Arabia and across the region, exacerbating an existing unemployment problem.

"It is worth noting that while the U.S. forces allowed the Iraqis to loot and plunder various ministries, the only one they protected against public intrusion and theft was the Ministry of Petroleum," Adnan said.......................